Why do you need to increase your position when the fund falls?

Many friends are confused when they hear others say that funds should add positions when they fall. Fund adding means buying a fund. So why do you need to add positions when a fund falls? The editor below explains why.

If the fund falls, you have to increase your position. Let's take a look together. I hope it can bring reference.

Why do you need to increase your position when the fund falls? Because buying a fund when the fund falls will reduce the cost of buying and reduce the risk to a certain extent. Therefore, you should increase your position when the fund falls.

However, it should be noted that if you choose a relatively poor fund and increase your position when the fund falls, you may suffer heavy losses.

Therefore, when adding positions in a fund, you must be cautious and not add positions at will, because adding positions means increasing its risk. When the market is not good, it will accelerate losses. Only if you are very optimistic about this fund

It would be better to consider adding positions only when the time comes.

Is it good to add to the position every time the fund falls? It is not good to add to the position every time the fund falls, because when buying a fund, you have to be optimistic about the fund before you can add to the position. If the fund falls once, just add to the position. If the fund continues to fall, then add to the position.

If you add positions too frequently within five or six days, you may suffer heavy losses.

Therefore, when buying a fund, you must analyze the investment direction of the fund. If you are not optimistic about it, you should not increase your position just once when the fund falls. This is not good, because there is a possibility that the fund will continue to fall.

For relatively poor funds, the overall decline time is relatively long, possibly as long as about a year. Funds are risky investments, and you don’t just buy them when they fall. You need to analyze the situation, so

When purchasing, you need to be careful.

Among the mid-line stock selection techniques for stocks that have been trading at the daily limit, if you want to make a mid- to long-term layout, you have to look at the current market situation. You can refer to the annual line (250-day line) and half-year line (120-day line) of the market index. If the trend is at the annual line

and above the half-year line, that means it is not a bear market at the moment.

In the face of national policies and the overall decline of the stock market, investors should not take chances to rush for a rebound or choose to buy, but should take advantage of the trend to clear positions and wait and see.

If the stock market rises sharply, you should enter with the trend and hold shares in the medium term.

Midline stock selection should be comprehensively analyzed from six aspects: K-line shape, technical indicators, relative price, company fundamentals, market trend, and the theme of the stock.

Some stocks with high P/E ratios and prices much higher than their intrinsic value should be abandoned.

As for how to catch stocks with continuous daily limit? The starting stock price rises by more than 6%; you must "increase the volume"; the greater the rise, the stronger the trend and the more favorable it is.

Among the key conditions for the daily limit, it is best to open higher by 2 to 3 points and open lower by no more than 2 points; do not increase the volume during the decline, otherwise there will be suspicion of shipments; the closing price should close near yesterday's closing price.

It is best to form a gap.